BNP Paribas, the largest bank in the Eurozone, has reported a more than doubling of its first-quarter profit from a year ago. The bank's net income, group share, rose from €1.84 billion in the first quarter of 2022 to €4.44 billion in the same period this year. This was boosted by the sale of the bank's U.S. retail division, Bank of the West, which yielded capital gains of €2.95 billion. The sale helped BNP Paribas increase its CET 1 ratio, a key measure of financial strength, from 12.3% in the previous quarter to 13.6% in the first quarter of this year.
The French lender's revenue of just over €12 billion for the period exceeded the company's compiled consensus of €11.7 billion. This was driven by net interest income ticking higher in the French retail market, which is usually a difficult market. Although the bank's securities trading revenue fell by 1.8%, it still performed better than some peers, including Deutsche Bank, whose fixed-income trading declined by 17% in the first quarter.
BNP Paribas' strong financial results come at a time when European lenders are working hard to restore confidence in a sector that has been battered by turmoil. The bank's capital and liquidity buffers have been bolstered by the sale of Bank of the West, and its improved CET 1 ratio is a positive sign for investors and stakeholders.
Overall, BNP Paribas' performance in the first quarter of 2023 demonstrates the bank's resilience and ability to adapt to a challenging environment. With a strengthened balance sheet and strong financial results, BNP Paribas is well-positioned to continue delivering value to its customers, shareholders, and other stakeholders.
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